Donald Trump threatens to impose ‘substantial’ tariffs on semiconductor imports to US, says ‘If they are not coming in, there is a tariff’

President Donald Trump has said that his administration will impose tariffs on

semiconductor imports

from companies that are not shifting production to the US, reports Reuters. Speaking ahead of the high-profile dinner he hosted at White House recently, Trump said “Yeah, I have discussed it with the people here. Chips and semiconductors - we will be putting tariffs on companies that aren't coming in. We will be putting a tariff very shortly”. He, however, did not share any exact rate or time. “We will be putting a very substantial tariff, not that high, but fairly substantial tariff with the understanding that if they come into the country, if they are coming in, building, planning to come in, there will not be a tariff,” Trump told reporters.“If they are not coming in, there is a tariff,” Trump reiterated. He then pointed at Tim Cook saying “Like, I would say (Apple CEO) Tim Cook would be in pretty good shape”. The Apple CEO, at the dinner, committed a domestic investment commitment of $600 billion over the next four years.

Last month, Trump said that the US will impose a tariff of about 100% on imports of semiconductors but it will not apply to companies that are manufacturing in the US or have committed to do so.

Trump asks Apple CEO Tim Cook on investment plans

“Tim, how much money will Apple be investing in the United States? I know it's a very large amount. You were elsewhere before, and now you're really coming home in a big way. How much money will you be investing?” Trump asked.To this, CEO Tim Cook responded: “$600 billion.” He then went on to credit Trump for creating conditions for Apple’s growth. Cook said “I want to thank you for setting the tone such that we could make a major investment in the United States... That says a lot about your focus and your leadership and your focus on innovation”.Trump’s question appeared to reference Apple’s growing presence in India. Earlier this year, he told Cook: “I don’t want you building in India.” The remark came after Apple confirmed plans to expand production outside China.According to reports, Apple is working to assemble about 25% of global iPhones in India in the coming years. The company is expected to invest around $2.5 billion to raise production capacity from over 40 million to about 60 million units annually.